Let us make no bones about it: despite the reduction in import duties, cars in Malaysia are expensive. Even if we take our national cars, considering the usual specifications these cars come with, with generally few basic safety features such as anti-lock braking systems (ABS) or airbags which are normal fare in other markets, one would be hard-pressed to say they are cheap.

They are cheap only relative to foreign makes, not if compared to normal prices in other countries. And if we venture into prices of foreign cars in Malaysia, we are faced with what is bordering on the ridiculous.

Malaysia is one of the few countries in the world where a standard European-made sedan can easily be more expensive than a small house.

We know why such policies exist: we want to nurture our car industry.

But while it is wrong for the government to continue with fuel subsidies, similarly it is wrong for consumers to continue supporting the local automotive industry by having to pay high car prices in this form of reverse subsidy.

This market anomaly is a strain on the Malaysian consumer, which will doubly hurt once fuel pump prices go up.

The same argument against fuel subsidies should apply to car duties: both create artificial prices, one lower, the other higher than what it would be, if left to market forces.

High car prices have made Malaysia a protected, captive car market. Just see how Thailand's car industry has progressed relative to ours. Not to mention the actual financial burden on the people, having to splurge large amounts of cash on a declining asset.

Market prices should prevail to align with present realities - for both fuel prices and car prices. The government must correct these two anomalies come 2008. Consider the consumer's plight.

Let's share the burden of record oil prices and not simply pass it on without alleviating the complementary pain of expensive cars. We cannot correct one without the other. We must right these two wrongs simultaneously.

by W.N.N, Ampang, Selangor

Letters - NST (23 oCT 2007)